The dollar is falling near its lowest level in a week


The dollar hovered near a one-week low against major currencies yesterday to catch a breath after its biggest drop in nearly a month at night amid doubts over the fate of the financially troubled Chinese real estate giant Evergrande.

The yen fell to its lowest level since mid-August as Treasury yields rose to the highest level since the beginning of July.

The dollar index, which measures the performance of the US currency against a basket of 6 competitors, rose 0.04% to 93.142 after declining by 0.36% yesterday, Thursday, to touch the lowest level since September 17 at 92.977.

The safe-haven dollar was hit after Beijing injected new liquidity into the financial system yesterday when Evergrande announced it would pay interest on domestic bonds.

However, some of its overseas bond holders said they had not received the coupon payments by yesterday’s deadline.

More interest payments on dollar bonds are due next week.

The dollar rose 0.14% to 110.48 yen earlier in the session and touched 110.49 for the first time since August 12, as US Treasury yields rose to 1.452% in Tokyo, a level not seen since July 2.

The British pound was little changed and settled at $1.3717 after rising to $1.3750 overnight for the first time since September 20.

The euro also settled at $1.1740, after falling to its lowest level in more than a month at $1.16835 the day before yesterday.



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